How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Ely Your Own Question
Ely, Counselor at Law
Category: Legal
Satisfied Customers: 101536
Experience:  Private practice with focus on family, criminal, PI, consumer protection, and business consultation.
Type Your Legal Question Here...
Ely is online now
A new question is answered every 9 seconds

can the clause "this guaranty will continue unchanged by any

This answer was rated:

can the clause "this guaranty will continue unchanged by any bankruptcy" in a retail store lease be upheld?
Hello friend. My name is XXXXX XXXXX welcome to JustAnswer. Please note: (1) this is general information only, not legal advice, and, (2) there may be a slight delay between your follow ups and my replies.

I am sorry, but likely not. According to 11 U.S.C. §541(c), an interest of the debtor in property becomes "property of the estate," meaning that the debtor does not lose the property or contract right, despite a provision in an agreement.

What this essentially means is that a clause that states "this shall survive bankruptcy" is not not valid if a bankruptcy is filed, and shall not survive a bankruptcy.

Now, these clauses are often put in out of force of habit or with hope that the parties would believe that it would be valid, however, it is not, if a bankruptcy is filed.

If this is not what you had wanted to hear, I am sorry. Please note: I aim to give you genuine information and not necessarily to tell you only what you wish to hear. Please, rate me on the quality of my information and do not punish me for my honesty. I understand that hearing things less than optimal is not easy, and I empathize.

Gentle Reminder: Please use the REPLY button to keep chatting, or RATE my answer when we are finished. Kindly rate my answer as one of the top three faces and then submit, as this is how I get credit for my time with you. Rating my answer the bottom two faces does not give me credit and reflects poorly on me, even if my answer is correct. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith. (You may always ask follow ups at no charge after rating.)
Ely and 11 other Legal Specialists are ready to help you

Related Legal Questions